Government accepts 'one rank, one pension' for defence forces

Government accepts 'one rank, one pension' for defence forces

The long-standing demand of ex-servicemen for 'one-rank, one-pension' was accepted by the government on Monday with Finance Minister P Chidambaram making an announcement in this regard in the interim budget.

Presenting the interim budget, Chidambaram said the government would transfer Rs 500 crore (Rs 5 billion) to the defence pension account for implementing one rank, one pension scheme.

The decision, likely to benefit around three million defence pensioners, will come into effect from 2014-2015.

The two United Progressive Alliance governments, he said, had made changes in the pension rules for defence services on three occasions but some gaps remained in the ranks of 'Sepoy' and 'Naik' among non-officers and 'Major' and above among officers.